Nürnberg – LEONI AG, Nürnberg, plans for the year 2001 to exceed the 2 billion mark in turnover. At the same time, the international group, which employs more than 16,000 staff in his divisions Wire, Cable and Wiring Systems, intends to increase the profit on ordinary activities and the profit for the year at a more than proportional rate. In fiscal 2000, LEONI AG reached a turnover of DM 1.88 billion (1999: DM 1.2 billion) and thus exceeded its outlook by more than DM 100 million. This is an increase of 56 % compared to the previous year and a doubling in the two year comparison. The profit on ordinary activities increased even further and now amounts to DM 79.9 million (1999:DM 71 million). Profit for the year increased from DM 36.6 million to DM 43.6 million.

Wire Division to be higher utilized
All three divisions Wire, Cable and Wiring Systems have contributed to this positive development. In 2000, due to a considerably higher use to capacity than in the previous year, the Wire Division was able to even higher increase profits before depreciation, interest payments and taxes (EBITDA) than its turnover, resulting in 36 % to DM 30.7 million. Turnover reached DM 234 million at an increase rate of 22.5 % (1999: DM 191 million).

Cable Division to increase the most
The Cable Division can report the biggest rate in growth. It more than doubled its turnover compared to the year 2000 and reached DM 694 million (1999: DM 339 million). This was mainly due to the companies consolidated for the very first time, especially the former Siemens cable plants LEONI Special Cables Friesoythe and LEONI Automotive Cables, Brake. Disregarding these first-time consolidations, the increase in turnover would still range at 26 %. Almost all production facilities were used to full capacity. In addition, the new subsidiaries contributed a very good share in profit. Thus, profits before depreciation, interest payments and taxes (EBITDA) in the Cable Division increased at a much more than proportional rate compared to turnover: it increased by 140 % and amounted to DM 64.7 million (1999: DM 6.8 million).

New British subsidiary to expand customer base
In 2000, the Wiring Systems Division continued with its rate of growth. Turnover increased to DM 953 milion (Previous year: DM 678 million), this is an increase of 40 %. Taken over in February, the cable harness business of the British wiring systems manufacturer LEONI Wiring Systems UK, formerly Lucas Rists, now trading under the name LWS UK, mainly contributed to this increase. This new subsidiary required considerable restructuring measures which together with the comprehensive preparatory work for future orders, slackened the growth in profit. Profits before depreciation, interest payments and taxes (EBITDA) decreased by almost 5 %, from DM 90.9 million to DM 86.5 million.
The LEONI Wiring Systems‘ achievements regarding quality, service, technology and price were officially honoured just recently: For the second time in a row, the company was named as best wiring systems supplier worldwide by General Motors Worldwide Purchasing and received the "Supplier of the Year Award". Only a few months ago, LEONI was awarded by Porsche as "Best supplier of the year 2000".

Concentration on core competencies to improve market position
In 2001, LEONI plans to concentrate in its three divisions on its field of competencies and to further improve its market position. In the Wire Division, LEONI ranges on top in four market niches: in high performance wires, highly flexible strands, wires for coaxial cables and in Lyonese Wares. In the Cable Division, LEONI ranges on first place in Europe in the field of automotive wires and on second place worldwide. The company expects to see a continuous strong demand in this field in the future. Another important growth market for LEONI is the telecommunications industry for which the group mainly supplies fibre optic and copper cables, special cables and complete cable harnesses. LEONI also sees growth potential in the field of special cables which are developed and produced for the capital goods industry, e. g. for automation and traffic as well as diagnostic and therapy systems.

State-of-the-art wiring systems to be developed
In the Wiring Systems Division, LEONI was able to secure on a long-term basis orders for current and future series productions with its key customers Audi/VW, DaimlerChrysler, General Motors and Porsche as well as in the new British business activities with Rover, Land Rover, Bentley and Rolls Royce. In order to be technically equipped for the future, numerous LEONI development teams work on the wiring harness technology of tomorrow: Flat conductor wiring, integrated electronics control (42 voltage) and vehicle module concepts. Inteldis, a joint venture with the longtime partner Hella, was founded in order to develop intelligent wiring systems. It supports these developments with is bundled compentencies in wiring systems and electronics expertise.

Profit to increase by a more than proportional rate
On the basis of the fields of growth in the three divisions, LEONI AG wants to exceed the 2 billion mark in the current business year. "At the same time, we want to increase the profit on ordinary activities and the profit for the the year in all the divisions at a more than proportional rate to turnover", states Thoma. "Regarding the results of the last few weeks and months, we expect to be successful." The group will publish the figures for the first quarter 2001 at the end of May.